Canadian acquisition company to purchase five US cannabis firms

CSAC – a special purpose acquisition company that is listed in Canada (CSA/A:CN) – will pay a total of 99 million Canadian dollars ($76 million) in cash for the five companies, with plans to issue to shareholders about 7.6 million shares and promissory notes worth CA$57 million.

Under the agreement, the company will acquire:

Nevada-based Washoe Wellness, a cannabis cultivator, producer and distributor with operations in Reno and distribution to Las Vegas.

LivFree Wellness, also based in Nevada, with three dispensary operations and four cultivation facilities across the state.

Nevada-based The Canopy NV, which has two dispensaries – one in downtown Reno and another in the Reno suburb North Valleys.

Massachusetts-based Sira Naturals, a cannabis cultivator and with three dispensaries across the state.

CannaPunch of Nevada, a cannabis producer with operations in Nevada and Colorado.

Combined revenues for the five firms – which are all licensed for medical and adult-use operations – is projected to be CA$261 million in 2019, according to a news release.

Once the deal closes, CSAC will own three cultivation and production facilities, a center dedicated to cannabis goods manufacturing and eight dispensaries on the West and East coasts.